Transocean Guardian launches $700 million 5.5-year secured notes; pricing Thursday

By Paul A. Harris

Portland, Ore., June 27 – Transocean Guardian Ltd., also known as RIG, rolled out $700 million of 5.5-year senior secured notes with a Wednesday launch, according to a syndicate source.

An investor call was scheduled to get underway at noon ET on Wednesday.

The deal is set to price on Thursday.

Goldman Sachs & Co. is the left bookrunner for the Rule 144A and Regulation S for life offering. Citigroup Global Markets Inc., Wells Fargo Securities LLC, DNB Markets and Morgan Stanley & Co. are the joint bookrunners.

Barclays, Credit Agricole CIB, SEB, SpareBank and NIBC are the co-managers.

The notes become callable after three years at par plus 50% of the coupon. They also feature an 11% per year mandatory redemption, payable semiannually at par.

The Steinhausen, Switzerland-based drilling services provider expects to use the proceeds to make one or more intercompany loans to Transocean Inc. (TINC) or other non-Swiss affiliates of TINC, which, together with cash on hand, will be used to refinance the senior secured term loan facility of Songa Enabler Ltd. and Songa Encourage Ltd. and to fund a debt service reserve.

No proceeds will go to any Swiss affiliate of Transocean Guardian.

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